| Naresh Malhotra, CEO, Cafe Coffee Day, told Business Standard, "Over the years, we have built our brand and customer loyalty. |
| This is being leveraged for the beverage extension and it will work." |
| Cafe Coffee Day sells its own brand of cookies, wafers and mints, apart from coffee. |
| The company believes the packaged water foray will help it build the Cafe Coffee Day brand as customers would carry the bottled water with them, thereby increasing brand visiblity. |
| In foreign countries, retail chains such as Macy's in the US are known to have bottled water. |
| At present, the packaged drinking water sells in 50 per cent of Coffee Day outlets at a price of Rs 15 a bottle of 500 ml. Malhotra said, "Instead of introducing existing brands, we see it as an opportunity to build a brand ourselves." |
| The company plans to sell its packaged drinking water across all its 400 outlets by January 2007. |
| "We can't match with that pricing as we serve packaged water under a different ambience as opposed to mom and pop outlets which retail other packaged water brands," said Malhotra. |
| Cafe Coffee Day executives expect 70 per cent of their 100 million customers (expected walk-ins in 2007) to buy packaged water from their outlets. |
| Malhotra, however, clarified the company would continue to offer normal water at no additional cost at the outlets. |
| Both the packaged water and the flavoured water extensions will bear the Cafe Coffee Day brand name and will primarily target the age group of 16- 25 years. The company believes that customers will find its water foray attractive. |
| The company expects a revenue of approximately Rs 75 crore from its water foray in its first full year. |
| At present, Cafe Coffee Day outsources its packaged water from third party manufacturers. |
| However the company will be looking at other options, Malhotra said without elaborating further. |
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